Title Search & Review

About the service

In every commercial real estate transaction, the property's title is thoroughly investigated and reviewed. Beyond verifying that the seller has a legal claim to the property, a title search provides valuable information to the buyer before finalizing the sale. This process involves collecting detailed information about the property, including its legal description, existing structures, and pertinent details about the homeowner(s). It also determines the legal owner of the property and identifies any claims or financial liens against it or the owner(s). Conducting a title search is essential for safeguarding both the buyer and the seller from potential legal issues. Typically carried out by a lawyer or law clerk, a comprehensive title search can be time-consuming and includes details such as the current owner(s) names, potential tenant ownership, the property's legal description, property identifier number assignment, adjoining easements, and the property's transaction history.

Reasons Why a Title Search Is Important

A reputable real estate lawyer in Toronto will perform a title search as a key component of their real estate services. For extra protection, a title search can also reveal the number of past owners. If a house has been sold numerous times within a short period, it could be a red flag for the buyer.

To Validate the Current Sellers

Validating the property ownership with a title search can prevent fraudulent sales. A proper title search will confirm the current owner(s) have the legal right to sell the property and uncover if a relative of the seller has any rights to the property.

To Check for Encumbrances and Easements on the Property

A title search can uncover any easements on the property, such as agreements with neighbors. For instance, two properties might share an access road, driveway, or another right of way.

To Ensure the Property Is Debt-Free

Before closing a home sale, it is crucial to ensure there are no liens against the property. Liens can be placed for various reasons by lending institutions or the government. Common government liens include child support or income tax arrears. All registered liens must be paid and removed before the seller can release the property.

To Check for Any Bylaws Registered to the Property

Regardless of renovation plans or zoning use, the title search will determine if any legislated bylaws affect the home. This reveals if the property is zoned as historical, full or part residential/commercial, and if part of the home can be used as rental income.

To Find Prior Boundary Disputes

A proper title search may reveal unknown boundary or survey disputes that could halt the transaction. While a land survey settles disputes with neighboring properties, a title search confirms if any legal issues are recorded.

Conclusions

A title search is an indispensable step in the property buying process. It protects the buyer from legal complications and financial losses, ensures the property’s legal status is clear, and verifies that the seller has the right to sell the property. By uncovering potential issues such as liens, easements, and zoning restrictions, a thorough title search provides peace of mind and safeguards the investment in the property.

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